KBR secures contract from BP Exploration for services in Azerbaijan

Map of AzerbaijanKBR which has been in Azerbaijan for many years as part of earlier contracts on development of energy infrastructure, has made a comeback after it secured a contract from BP, a major oil and gas fields developer in Azerbaijani sector of the Caspian Sea.

KBR will be conducting engineering and procurement back up services for the Shah Deniz – Stage 2 project, located in the Azerbaijan sector of Caspian Sea.

Shah Deniz gas field discovered in 1999 (proven reserves: 1.2 trillion cubic meters of gas) is recognized as one of the largest finds in the last two decades. The gas supplies from the field had already started in the early 2000′s via the South Caucasus Gas Pipeline (also known as Baku-Tbilisi-Erzurum), but the 2nd stage of the project is destined to serve Europe’s both economic and political needs through the direct route into Southern Europe.

KBR, which was the contributor to the Sangachal Terminal Expansion Program (STEP), would now provide engineering design and procurement support services for an offshore complex, comprising two bridge-linked fixed jacket platforms and an onshore gas processing facility as part of the deal.

As stated in the press release of KBR, the onshore facility consists of two gas processing trains with 900 mmscf/d capacity each and condensate processing facilities with about 105 mbd capacity located adjacent to the existing Shah Deniz Stage 1 facilities at Sangachal Terminal. This work is set to begin in January 2014 and run through to 2018.

According to KBR Hydrocarbons group president Roy Oelking, “KBR is delighted to continue our longstanding relationship with BP and its partners by taking this world class energy project to the execution stage and follows KBR’s 20 year presence and successful track record in Azerbaijan working with BP on both the Shah Deniz and ACG fields.”

Final Investment Decision on the development of Shah Deniz-2 and TANAP and TAP projects was signed by leaders of countries this past December in Baku.

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